20. Real interest rates are defined as nominal interest rates that have been adjusted for which of the following?

A. inflation

B. default risk

C. accrued interest

D. interest rate risk

E. both inflation and interest rate risk

21. The interest rate risk premium is the:

A. additional compensation paid to investors to offset rising prices.

B. compensation investors demand for accepting interest rate risk.

C. difference between the yield to maturity and the current yield.

D. difference between the market interest rate and the coupon rate.

E. difference between the coupon rate and the current yield.